Our Towns;In Love Canal, Toxic No More, Another Mess

By EVELYN NIEVES

Published: July 28, 1996

He and his wife picked out their retirement home, a corner bungalow with a wraparound yard, when "Love Canal real estate" was an oxymoron. The state had just announced that it was O.K. to repopulate the evacuated neighborhood, and the Demerses had their doubts. But if Love Canal still suffered toxic waste contamination, Mr. Demers, now 70, reasoned, "Well, we were old anyway, so it wouldn't matter that much."

Three and a half years later, Mr. Demers's neighborhood is starting to look like any other. His whole block is full, almost all 234 houses that the Love Canal Area Revitalization Agency offered for sale are spoken for, and everyone knows everyone. When Mr. Demers's wife died last year, neighbors stopped in day and night to pay respects. "It's the best place to live in the world," Mr. Demers said.

Yet he has complaints. Many complaints. The house the Love Canal Area Revitalization Agency renovated and sold as "maintenance free" has given him one headache after another. "The first night, Jan. 26, 1993, my wife and I had to sleep with our coats on," he said. The windows leaked, the roof leaked, the porch siding was loose and sloppy. Mr. Demers has replaced four of the eight windows, taking a job at a Ponderosa restaurant to pay for them. He has also written or called all his local and state politicians. Next on his list: the F.B.I. "It's time that this mess be exposed," he said.

Many people have complaints. At the agency's monthly board meeting three weeks ago, dozens of residents complained about leaking windows, buckling exterior paneling, crumbling driveways and damp cellars, all in homes sold on the promise that they were as good as new. Some said the agency has yet to make good on repairs promised nearly four years ago.

THESE may not be life and death issues. But residents say all the housing snafus and bureaucratic boondoggles make them wonder just what's going on here. Given Love Canal's reputation as an infamous national environmental disaster area, part of the revitalization agency's job is making sure everything goes smoothly in its mission to repopulate the neighborhood with happy people. More and more homeowners are just plain fed up.

"My house is falling down around me," said Eileen Weber, who bought her ranch, a block from Mr. Demers's house, about the same time he did. She has a fistful of purchase orders made by agency contractors for all sorts of amenities for her house that were never delivered. "I'd like to know where the money went," she said.

Others have asked the same question. The Niagara Falls District Attorney has been investigating the revitalization agency for more than a year. An independent audit released in March criticized the agency for questionable bidding and financial practices, including paying for items twice. Since then, the executive director was dismissed and the agency chairman, James Galie, who is also Mayor of Niagara Falls, has promised to fix things.

Ms. Weber feels duped. She took a chance on Love Canal, lured by the $50,500 price for a decent-sized ranch. The state had assured her the neighborhood was no more of a health hazard than others nearby, and the houses cost 20 percent less and were in better shape. "I liked the location. I liked the layout. It has a nice-sized yard for the dog. Unfortunately, there's a lot of problems."

Not everyone is unhappy. Charlie and Debbie Cunningham, who bought the biggest, most expensive house on the toniest block in Love Canal, are sitting pretty. The 3,800-square-foot ranch they plunked down $81,000 for four years ago needed work, and they've done it. "It's still a pretty good deal," Mrs. Cunningham said.

Susan Bloss, the agency's new executive director, says the agency has learned from its mistakes. But now that some houses are being fixed correctly, other houses look worse in comparison.

So even though people looking for affordable housing have flocked here, recent publicity about all the problems has prompted the agency to announce that it's time to work on fixing Love Canal's image. Again.